Wednesday, June 30, 2010

In accounting terms, what are Generally Accepted Auditing Standards (GAAS)?

Generally Accepted Auditing Standards (GAAS) in the United States of America , are broad rules and guidelines set down by the Auditing Standards Board of the American Institute of Certified Public Accountants (AICPA).

These standards require, that while working for a client, a CPA would apply the generally accepted accounting principles (GAAP). If the CPA fails to do so, they can be held to be in violation of the AICPA's code of professional ethics and face punishment.